Switching to an electric vehicle (EV) isn’t just a smart move for the environment, it’s fast becoming a financially savvy decision for Irish drivers. While EVs once came with a significantly higher price tag than petrol or diesel vehicles, we’re now seeing costs come down, and in some cases, match their combustion-powered counterparts. That’s making the long-term financial benefits of EV ownership more attractive than ever. In this article, Powered by AXA, our Nevo experts highlight five key financial advantages of making the switch to electric.

1. Lower Running Costs

One of the biggest financial perks of driving an EV is the substantial reduction in day-to-day running costs. Electricity is considerably cheaper than petrol or diesel in Ireland. According to the Sustainable Energy Authority of Ireland (SEAI), charging an EV costs roughly €4 to €5 per 100km. In comparison, covering that same distance in a petrol or diesel car can cost significantly more. Many EV drivers also make the most of off-peak night-time rates, cutting costs even further. Over time, these savings can add up to thousands of euros, a major incentive for anyone thinking about going electric.

2. Reduced Maintenance Bills Over Time

EVs have fewer moving parts than traditional combustion engine vehicles, which means lower maintenance costs in the long run. Without things like timing belts, spark plugs, oil filters, or exhaust systems, there’s simply less to go wrong. Regenerative braking also helps reduce wear and tear on brake pads. While battery replacement can be expensive, most modern EVs come with warranties covering battery performance for up to eight years or 160,000km, whichever comes first. This kind of coverage gives peace of mind and protects against major unexpected costs.

3. Tax Incentives and Grants

The Irish government has introduced several incentives to make going electric even more appealing. EV buyers can benefit from up to €5,000 in Vehicle Registration Tax (VRT) relief on qualifying electric cars. There's also a purchase grant of up to €3,500 for private EV buyers and a home charger grant of up to €300. Businesses aren’t left out either, they can take advantage of accelerated capital allowances on EVs and charging infrastructure. Altogether, these incentives significantly reduce the upfront and ongoing costs of EV ownership in Ireland.

4. EVs Are Holding Their Value

Unlike petrol and diesel cars, which typically depreciate quickly, EVs are currently retaining their value well in Ireland. This is thanks to rising demand, improvements in battery technology, and EU policies aimed at reducing reliance on fossil fuels. The expansion of Ireland’s charging network and the government’s ambitious EV targets are also boosting resale values. For owners, that means better trade-in or resale returns down the line.

5. Future Proofing Against Fuel Price Volatility

Petrol and diesel prices are prone to unpredictable spikes, often influenced by global events. For Irish drivers, this can mean unpredictable costs at the pump from one week to the next. EV charging, especially at home, gives you far more control. Electricity rates, particularly off-peak tariffs, are generally more stable over time and often protected by regulatory frameworks. By switching to an EV, you’re insulating your running costs from the unpredictability of fossil fuel markets, a smart move for any long-term planner.

Final Thoughts



We believe transitioning to an EV here in Ireland now presents a compelling case for long-term financial savings. From lower running costs and reduced maintenance expenses to tax incentives and insurance perks, the financial benefits of going electric extend far beyond the initial purchase price. As the Irish government continues to promote electric mobility through grants and tax relief, and as EV technology continues to advance, the economic case for making the switch to electric is becoming increasingly more difficult to ignore!

AXA provide car insurance for EVs to customers across Ireland. For EV owners, you can get fire and theft cover for your battery and cable, accidental damage to your battery (only on comprehensive policies) and up to €650 for accidental damage to your wall charger depending on which cover you choose. Visit the AXA website today for more information.